News

30/06/2010 15:19:53

Investment income portfolios 'should be diversified'

Britons may be wise to seek investment advice concerning their income portfolios, it is claimed.

According to JP Morgan Asset Management, ten companies account for more than half - 55 per cent - of the dividend income from the FTSE All Share over the past year.

The consequence of this is a narrow "investment universe", which should be widened by those setting money aside, the company states.

Head of investment trusts David Barron says: "Investors are seeking alternative sources of dividend income and we believe this can be found in emerging markets."

Not only do these markets offer attractive yields, they also present capital growth options, he adds.

Professional financial advisers may also offer alternatives in the form of ethical investment trusts.

F&C Asset Management recently discovered some 73.3 per cent of investors would consider this choice if it was available to them.

But more than half the respondents added this would be dependent on the investment focus offered by the trust.